£600m Investment in New Products

British Airways PLC
31 January 2000


BIGGEST CUSTOMER INVESTMENT IN AIRLINE HISTORY
£600m investment includes new 'World Traveller Plus' cabin and
'Lounge in the Sky'

British Airways today presented £600m worth of new products
that will be introduced over the next two years. The
investment is the biggest of its kind in airline history. It
has been made possible by an internal efficiency and
restructuring programme which the airline embarked upon in
1996 and will be entirely funded out of existing budgets.

Today's announcement is the result of extensive market
research and work with leading product design experts.  It
builds on the airline's strategy announced last year to focus
on the most profitable segments of the market.  For the
airline's customers, it will redefine travel for the 21st
Century with the airline's entire product portfolio being
upgraded.

These new ground-breaking products, which will set benchmarks
for comfort and design, include:

  -  a new cabin, World Traveller Plus, offering more space
     and facilities than other economy products, as well as a
     doubled hand baggage allowance; making British Airways the
     first major airline to offer four distinct cabins
  -  a 'Lounge in the Sky' featuring the world's first fully
     flat bed for business class travellers who need to work and
     sleep in private on longhaul trips
  -  a totally refurbished Concorde
  -  revamped First cabins
  -  rollout of the new Club Europe
  -  upgrades to airport terminals, check-in and lounges,
     including a completely new terminal at New York JFK

Bob Ayling, British Airways Chief Executive, said: 'On
service, we said we'd deliver and we have. We asked thousands
of our customers what we do well and where we need to improve.
They want us to be the best in the world.  So do we.  The £600
million investment we are making will ensure that we are.  The
quality of service and choice that we will be able to offer is
the product of our restructuring and all the immensely hard
work that has been put in over the last three years by
everyone who works for British Airways.  It has been tough
getting there but we have done it.'


Notes to editors:

1.World Traveller Plus features a dedicated cabin, new
  wider seats offering significantly more legroom, in-seat PC
  power and telephone, doubled hand baggage allowance and an
  enhanced service at an affordable premium for the cost
  conscious traveller.

2.A 'lounge in the sky' offering an armchair-style seat
  with footstool that converts to a completely flat six foot
  long bed for business travellers in Club World.  It will also
  have larger personal video screens offering multi-channel
  entertainment, in-seat power for laptop computers and
  telephones, doubled hand baggage allowance and more flexible
  catering to allow customers to relax, sleep or work.

3.The totally refurbished Concorde will have new seats and
  new bathrooms.  It also has new interiors designed by Conran
  Partners, led by Sir Terence Conran and London-based design
  agency Factory.

4.The revamped First cabin takes first class travel to even
  greater heights.  It was created by leading British interior
  designer Kelly Hoppen and features a burr walnut wood effect,
  Connolly leather, a colour palette of blue, deep red and beige
  using different textured fabrics like cashmere and chenille
  and in-seat power for laptops and telephones.

5.The new Club Europe features new leather seats, increased
  space for hand baggage and an improved flight schedule.  This
  includes a record number of early departures from Heathrow
  (returning in the same day) to the top 26 European
  destinations.

6.The investment also includes a £150 million World
  Traveller economy upgrade on the longhaul fleet. This includes
  new seats, seatback video throughout the cabin and new
  interiors.  A focus on family travellers includes initiatives
  like 'feed families first' and a treasure chest of in-flight
  toys from top store Hamleys.


Photographs are available on www.newscast.co.uk  (UK and overseas).